Estonia is set to support the development of a new biomethane injection point that will allow renewable gas to be fed directly into the country’s gas transmission network, strengthening energy security and supporting decarbonisation efforts.
The Ministry of Energy and the Environment has approved a regulation that will provide financial support for the establishment of at least one public injection point. The facility is expected to enable the annual injection of a minimum of 33 gigawatt-hours (GWh) of biomethane into the gas network.
Minister of Energy and the Environment Andres Sutt said Estonia’s biomethane sector has expanded rapidly in recent years, creating strong potential for further growth. Biomethane production in the country has increased sevenfold over the past six years and is currently used mainly in the transport sector. However, future plans include supplying new gas-fired power plants that can provide flexible, dispatchable energy.
He said the new support measure would help reduce the carbon intensity of the gas system while increasing the role of domestically produced renewable energy. The injection point will also create new commercial opportunities for biomethane producers by opening access to the wider gas market.
The scheme will be funded through the European Regional Development Fund with a total budget of €2 million. Up to 75 per cent of eligible project costs can be covered. All companies registered in Estonia that are already producing biomethane, or planning to enter the market, will be able to apply.
Biomethane production in Estonia began in 2018 with output of 39 GWh. By 2024, this had grown to around 275 GWh. Alongside its use as a renewable transport fuel, biomethane production generates digestate, which is widely used as a natural fertiliser in agriculture.
Research carried out by the University of Tartu and Tallinn University of Technology estimates that Estonia’s biomethane production potential could reach between 0.8 and 1.4 terawatt-hours (TWh) per year by 2035. Under Estonia’s Energy Sector Development Plan to 2035, the country aims to produce 1 TWh of renewable gases annually, with biomethane expected to account for the majority of this volume.
The Environmental Investment Centre is expected to open the application round in the first half of 2026, with the window remaining open for three months. The supported injection point must be fully operational by 2029 at the latest.
The initiative forms part of Estonia’s “A Greener Estonia” policy framework under the EU’s 2021–2027 cohesion funding programme and is designed to contribute to both national and European climate targets.
Estonia to back construction of biomethane injection point into national gas network
